High Deductible Healthcare Plan

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sportsfreak985
Posts: 2
Joined: Mon May 21, 2018 10:07 pm

High Deductible Healthcare Plan

Post by sportsfreak985 » Mon May 21, 2018 10:16 pm

Due to reasons that are probably too long to write out, my spouse and I will be on two separate high deductible plans each with their own HSA accounts.

In the future if we were to go to just one plan, will we be able to roll the two separate HSA accounts into one (or would it even be necessary?) If not, are we allowed to utilize the funds associated to the healthcare plan no longer being used towards medical expenses under the new plan?

I apologize if this question has been asked previously. I did some research and couldn't find an answer specific to this question.

Thanks!!

terran
Posts: 668
Joined: Sat Jan 10, 2015 10:50 pm

Re: High Deductible Healthcare Plan

Post by terran » Tue May 22, 2018 6:58 am

No, you wouldn't be able to roll them over into a new plan. HSAs are individual plans. For the second question, I think you're asking if you can use the HSA belonging to the person who drops their plan for medical expenses after you switch to a family plan? I don't see why that would be a problem. You can even use an HSA for medical expenses if/when you switch to a non-HSA eligible plan.

Spirit Rider
Posts: 7999
Joined: Fri Mar 02, 2007 2:39 pm

Re: High Deductible Healthcare Plan

Post by Spirit Rider » Tue May 22, 2018 7:04 am

Also, a plan of either spouse can take tax-free distributions for themselves, their spouse or their dependents. These distributions can be for any qualified medical expenses on or after the establishment date of the HSA account holder's first HSA.

RickBoglehead
Posts: 236
Joined: Wed Feb 14, 2018 9:10 am

Re: High Deductible Healthcare Plan

Post by RickBoglehead » Tue May 22, 2018 7:24 am

During the period you're on the high deductible plan, your HSA account is likely free. Once you move to the same plan, that non-connected HSA account will likely start charging monthly fees. While some HSA accounts, usually with a certain balance level, can be invested, lower balance accounts often pay paltry interest. We were in two HSA plans, one for two months (a 2nd enrollment was offered 60 days later when they realized they had messed up one of the plans and offered a much better option), and one for 6 months. Interest rates around 1%, no investment option due to inadequate balances. When each plan ended, monthly fees quickly overcame monthly interest. We emptied one account before that happened, the other we keep hitting regularly, but we're losing money every month (a few dollars). Goal is to empty it as rapidly as possible if you have no good investment options and get hit with monthly fees.

terran
Posts: 668
Joined: Sat Jan 10, 2015 10:50 pm

Re: High Deductible Healthcare Plan

Post by terran » Tue May 22, 2018 7:33 am

RickBoglehead wrote:
Tue May 22, 2018 7:24 am
During the period you're on the high deductible plan, your HSA account is likely free. Once you move to the same plan, that non-connected HSA account will likely start charging monthly fees.
That's a good point. There are some HSA providers that don't charge fees (Lively comes to mind) that you could roll over to, but if you know what person will be the primary on a new HSA eligible family plan in the future it probably makes sense to use the other persons HSA until it is depleted.

sportsfreak985
Posts: 2
Joined: Mon May 21, 2018 10:07 pm

Re: High Deductible Healthcare Plan

Post by sportsfreak985 » Tue May 22, 2018 9:19 am

Thanks everyone for your responses. Super helpful!!

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